Market News: Week Ending August 21, 2026

Market News: Week Ending August 21, 2026

Statistics Canada reported that the consumer price index moved 0.3% higher (seasonally adjusted) in July. On a year-over-year basis, the CPI was up 3.0%, faster than the 2.8% pace posted in June. This move in the pace of inflation was due largely to the higher energy prices. Specifically, the data show a 3.6% increase in gasoline prices during the month. All eight main CPI subgroups moved higher during July. Transportation reported the largest monthly advance (0.8%). Food and Shelter (both 0.1%) reported the smallest gains in July. The three Bank of Canada core inflation measures ranged from 1.9% to 2.7% on a year-over-year basis. CPI common, which the central bank says is most closely correlated with the output gap moved from 2.6% to 2.7% in this report. The fluctuations of inflationary pressures due to energy prices is unlikely to influence the Bank of Canada at its next policy meeting, scheduled for September 2. 

The Canada Mortgage and Housing Corporation announced that housing starts fell 4.9% to 229,074 units (seasonally adjusted annual rate) in July. This is down from June’s revised 240,773-unit level (originally reported as 238,971). The CMHC’s six-month trend level (which tends to smooth the results) was 247,377 in this report, down 0.5% from June. Despite considerable political rhetoric over the intervening 5 years, this measure remains well below the June 2021 level of 285,200. Given the dramatic shortfall in housing availability, these statistics continue to reflect poorly on political attempts to improve this issue. With the market looking for an advance, these results are considerably weaker than consensus expectations. Activity in the housing market has a significant "ripple" effect on the broader economy.   

The U.S. Census Bureau announced that housing starts in June were at a seasonally adjusted annual rate of 1,239,000. his is 12.4% below the revised June estimate of 1,415,000 and is 13.5% below the July 2025 rate of 1,432,000. At the same time, the number of building permits issued in July was 1,443,000. This is 5.0% above the revised June rate of 1,374,000 and is 3.1% above the July 2025 rate of 1,400,000. The starts results are weaker than market expectations, while the permits were above consensus estimates. 

The U.S. Federal Reserve announced that industrial production rose 0.2% in July, following a revised 0.3% gain in June (previously reported as 0.1%). On a year-over-year basis, industrial production was reported to have gained 1.1%. At the same time, capacity utilization for total industry stood at 76.3% in July, up from the 76.2% level reported for June of this year but down from the 76.4% level seen in July 2025. With the revisions, these results are modestly stronger than market consensus and show a continued resilience across the industrial sector. 

Statistics Canada reported that its Industrial Product Price Index (IPPI) rose 0.6% in July while its Raw Materials Price Index (RMPI) fell 2.2% during the month. A 6.4% increase in energy prices at the industry level was the primary driver. However, at the raw material price level, a 3.6% decline in crude energy product prices was the largest move down, suggesting industry prices may ease next month. On a year-over-year basis, the IPPI is up 12.4% and the RMPI is 18.1.7% higher. The IPPI and RMPI data are closely watched as they indicate relative inflationary pressures at the industry and raw materials levels and will apply those pressures to consumer prices.   

The U.S. Department of Labor announced that initial jobless claims totalled 206,000 (seasonally adjusted) in the week ending August 15, a decrease of 6,000 from the previous week's revised level. The previous week's level was revised up by 3,000 from 209,000 to 212,000. The 4-week moving average was 204,000, an increase of 4,250 from the previous week's revised average. The previous week's average was revised up by 750 from 199,000 to 199,750. These results are in line with market estimates. 

Note:
All index performance is in Canadian dollars.

IMPORTANT DISCLAIMERS
The information in this letter is derived from various sources, including CI Global Asset Management, CRA, Bloomberg, National Post, Globe and Mail, Wall Street Journal, Bloomberg, Reuters, Investment Executive, Advisor.ca, MarketWatch, Toronto Sun, The Guardian, MSN.ca and Statistics Canada at various dates. This material is provided for general information and is subject to change without notice. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Global Asset Management has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document.